Government Employee Services Division (GESD) Training

Transcription

1 National Finance Center Government Employee Services Division (GESD) Training Administrative Billings and Collections (ABCO) Basic Participant Guide Version 1.0 Updated as of January 21, 2014

2 Table of Contents Table of Contents Course Information Purpose Course Objectives Agenda Course Materials and Resources Ground Rules and Expectations Introduction to ABCO Chapter Overview Introduction to ABCO Main Functions of ABCOINQ Agency and NFC Responsibilities Federal Laws and Regulations Chapter Review ABCOINQ Access and Navigation Concepts Chapter Overview ABCOINQ Access ABCOINQ User Navigation ABCO Status Codes Chapter Review System Interfaces Chapter Overview Accessing the NFC Mainframe Relating NFC s Payroll/Personnel Processing System to ABCO PINQ Access, Relevance, and Navigation IRIS Access, Relevance, and Navigation SPPS Web Access, Relevance, and Navigation... 51

3 4.7. Reporting Center Relevance Chapter Review Salary Overpayment Bills for Current Employees Chapter Overview Introduction to Salary Overpayments Closing Out a Salary Overpayment Bill Applying for a Waiver or Cancellation of the Debt Chapter Review FEHB Bills for Current Employees Chapter Overview Introduction to FEHB Bills Closing Out a FEHB Bill Cancellation of a FEHB Bill Chapter Review Salary Overpayments for Separated Employees Chapter Overview Introduction to Salary Overpayments for Separated Employees Closing Out a Separated Employee s Salary Overpayment Bill Chapter Review FEHB Bills for Separated Employees Chapter Overview Introduction to FEHB Bills for Separated Employees Closing Out a FEHB Bill Chapter Review Procedures for Separated Employees with Other Indebtedness Chapter Overview Types of Other Indebtedness Other Indebtedness Contact Resources

4 9.4. Chapter Review Leave Buy Back Chapter Overview Conversion of Annual and/or Sick Leave to LWOP Buy Back of Advanced Annual/Sick Leave Chapter Review Garnishments Requested by Other Parties Chapter Overview Introduction to Garnishments Requested by Other Parties Child Support and Alimony Payments IRS Levies and IRS Payroll Deduction Agreements Chapter 13 Bankruptcy Commercial Garnishments Chapter Review Course Summary ABCO Knowledge Check Things to Remember Course Accomplishments Additional Resources Appendices Appendix A: Course Glossary Appendix B: Acronym List Appendix C: Table for Determining Bill Status Codes Appendix D: Chapter 5 Forms and Letters Appendix E: Chapter 6 Forms, Letters, and Calculations Appendix F: Chapter 7 Forms and Letters Appendix G: Chapter 10 Forms and Letters Appendix H: Chapter 11 Forms, Letters, and Tables

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6 1.0. Course Information 1.1. Purpose This course introduces the main functions of the Administrative Billings and Collections (ABCO) system. The course provides an overview of the ABCO system, information on system-generated and manually-created bills, and responsibilities of customer Agencies in ABCO processes and debt collection and management Course Objectives By the end of this course, you will be able to: Describe the ABCO system and its purpose Access and navigate within the ABCO Inquiry (ABCOINQ) System Describe how ABCO relates to the Payroll/Personnel Inquiry System (PINQ), Information/Research Inquiry System (IRIS), Special Payroll Processing System (SPPS) Web, and Reporting Center Describe the workflow processes related to current employees Billing salary overpayments Billing past due health benefits Describe the workflow processes related to separated employees Billing salary overpayments Billing past due health benefits Describe the workflow process for billing separated employees with other indebtedness Describe the workflow process for leave buy back Describe the workflow process for garnishments requested by other parties 1

7 1.3. Agenda This course will include the following chapters: Welcome Chapter Duration 15 Minutes Course Information Introduction to ABCO ABCOINQ Access and Navigation Concepts System Interfaces Salary Overpayments for Current Employees Federal Employees Health Benefits (FEHB) Bills for Current Employees Salary Overpayments for Separated Employees FEHB Bills for Separated Employees Procedures for Separated Employees with Other Indebtedness Leave Buy Back Bills Requested by Other Parties Course Summary 15 Minutes 30 Minutes 30 Minutes 1 Hour 1 Hour 1 Hour 30 Minutes 30 Minutes 30 Minutes 30 Minutes 30 Minutes 15 Minutes 1.4. Course Materials and Resources You are provided with the following course materials to assist your learning: ABCO Basic System Participant Guide 2

8 1.5. Ground Rules and Expectations Please follow these ground rules throughout the training: Sign the attendance sheet Feel free to ask questions Be respectful of other participants Keep us on schedule with timely returns from breaks Share your knowledge, experience, and ideas Use the Parking Lot to revisit discussion topics Give helpful feedback Turn off your cell phones and refrain from checking As you move through this participant guide, be sure to take note of the following special messages: CAUTION: A text field bordered and shaded in red indicates a cautionary messagem CAUTION messages advise you that failure to take or avoid a specified action could result in loss of data. IMPORTANT: A text field bordered and shaded in green indicates a very important message. This type of message provides information essential to the completion of a task. Subsequent steps in a process are dependent on the correct data entry or actions specified in an IMPORTANT message. While other messages may provide helpful suggestions, you should always adhere to messaging labeled as IMPORTANT. NOTE: A text field bordered and shaded in blue indicates a note. This type of message emphasizes or supplements important parts of the main text. A NOTE supplies information that may apply only in special cases. TIP: A text field bordered and shaded in yellow indicates a helpful tip. This type of message helps you apply the techniques and procedures described in the text to their specific needs. A TIP suggests alternative methods that may not be obvious and helps you understand the benefits and capabilities of the product. 3

9 2.0. Introduction to ABCO 2.1. Chapter Overview This chapter provides an introduction to the main functions and features of the ABCO system. It also explains Agency and National Finance Center (NFC) responsibilities in debt collection and management. Chapter Objectives By the end of this chapter, you will be able to: Explain the purpose of ABCO Describe the main functions that a user would perform in ABCO Describe the responsibilities of the Agency and of NFC in debt collection and management Explain how ABCO satisfies Federal laws and regulations regarding debt collection and management The following terminology will be addressed in this chapter: Terminology ABCO DCIA SPPS Web Description Administrative Billings and Collections Debt Collection Improvement Act of DCIA amended the Debt Collection Act of 1982, which first issued regulations to govern the collection of debts owed to the U.S. Government. Both are widely-referenced regulations in debt collection and management. Online payroll/personnel database entry, adjustment, inquiry, and retrieval application. Agencies use this system to override the automated payment process and manually adjust an employee s payroll record, in the case of special processing conditions. 4

10 2.2. Introduction to ABCO Lesson Overview This lesson provides an overview of ABCO s purpose and the debt collection and management process. Lesson Objectives By the end of this lesson, you will be able to: Summarize ABCO s purpose Identify the reasons that a bill is generated and created in the ABCO system ABCO is a system that provides an automatic method for billing and collecting debts from Federal employees and other individuals or vendors having outstanding debts with the U.S. Government. ABCO records all collections through an automated system until the debt is satisfied. ABCO interfaces with the NFC s Payroll/Personnel System (PPS) to properly record billing and collection transactions. IMPORTANT: ABCO services NFC s customer Agencies. It only monitors and records debts owed by current or separated employees that work for NFC customer Agencies. It does not monitor or record debts owed by all Federal employees. Reasons for Bill Generation Bills may be established in ABCO for collection of: Overpayments, erroneous payments, and/or duplicate payments that are processed in PPS, Any employee indebtedness that cannot be collected by offset in PPS, Other employee-related debts, such as damage to Government property, or failure to return Government property, and Voluntary collections received. 5

11 2.3. Main Functions of ABCOINQ Lesson Overview This lesson introduces the capabilities of the system and the functions that a user can perform within ABCOINQ. Lesson Objectives By the end of this lesson, you will be able to: Define the types of system-generated and manually-created bills List the different possible inquiries within ABCOINQ Introduction to Bills in ABCO There are two types of bills recorded and monitored in ABCO, including: System-generated bills, and Manually-created bills. The following subsections describe each of these types in greater detail. System-Generated Bills The following table identifies and describes each type of bill system-generated in ABCO: Type of Bill Salary Overpayments Description These bills result from the processing of: A personnel history correction, Corrected Time and Attendance (T&A) record, Internal NFC adjustment or NFC-29, or Agency request for billing via SPPS Web. 6

12 Type of Bill Past Due Health Benefits from Salary Description When an employee is on non-pay status and is covered by FEHB, there are two ways to collect the payment for the obligated premium: The employee may continue paying premiums by sending payments to NFC, or NFC will begin making deductions from the employee s salary when the employee returns to pay status. Manually-Created Bills NFC s ABCO analysts establish manually-created bills for all non-system-generated bills. NFC creates these bills when: Agencies submit Form AD-343, Payroll Action Request, An authorized Agency contact person s the designated ABCO inbox, or A payroll request is properly executed in SPPS Web. When NFC receives a request from the Agency through one of these three ways, an ABCO analyst enters the information received from the Agency into ABCO. Form NFC- 631na1, Bill for Collection, is then generated and sent to the debtor. In addition, when a Bill for Collection is generated for a non-salary related debt (e.g. travel, recertification, etc.), the Additional Information Regarding Employee Indebtedness letter, which explains the employee s rights under the Debt Collection Improvement Act (DCIA) of 1996, is also sent to the debtor. 7

13 Inquiry Capabilities in ABCOINQ ABCOINQ was designed and implemented to provide the ability to directly query billing and collection data. ABCOINQ is the only method for Agencies to directly interact with ABCO. The system allows you to query accounting data related to revenues, refunds, or reimbursements for the Agency Reporting and General Ledger Systems. Agencies may navigate ABCOINQ to gather information regarding specific bill records. Situations where these inquiry capabilities would be helpful include: An employee contacts the Agency with questions or concerns about a specific bill or account. The Agency needs to monitor a bill or account. The Agency wants to see all receivables due. The Agency seeks to understand why a bill was created or generated. ABCOINQ allows Agencies to complete the following inquiry options: View billing or collections data for debtor accounts, Review receivables for overpayments, erroneous payments, and/or duplicate payments, Review a list of receivables by social security number, Review collections and adjustment records, Review bill records, and Review receivable record details. 8

14 2.4. Agency and NFC Responsibilities Lesson Overview This lesson provides an overview of NFC and Agency responsibilities in relation to debt collection and management. Lesson Objectives By the end of this lesson, you will be able to: Determine NFC s responsibilities in debt collection and management Determine the Agency s responsibilities in debt collection and management NFC Responsibilities NFC assists Agencies in managing their delinquent debts to protect the U.S. Government s assets and in minimizing losses to comply with Federal laws and regulations regarding debt management. The following list includes the primary responsibilities of NFC: Process payroll, Process deductions from employees pay and post to the accounts receivable records, Produce bills, Process requests for billing received from the Agency, Update waiver statuses, Verify if bills are unpaid and send bills to Claims, and Process refunds. 9

15 In addition, NFC sends Agencies a package on a monthly basis via which includes: A standard letter regarding the Debt Management Improvement Plan, A listing of receivables that identifies all accounts requiring immediate Agency attention, and An explanation of the status codes that may be included on the list. The debt(s) continue to recur monthly on this listing until the Agency takes the appropriate action on the debt, and the debt is cleared. Agency Responsibilities Each Agency is responsible for performing certain tasks and duties in debt management. The following list presents some of the most important responsibilities that an Agency must complete: Submit requests to waive or cancel debt, Approve or deny waivers, Submit corrected T&A records, Submit requests for billing employees through SPPS Web, Form AD-343, or properly designated inboxes, Process nature of action codes (NOACs) to update employee statuses, Request refunds, and Appoint authorized personnel for bill approvals, waivers, and cancellations. 10

16 It is also the responsibility of each Agency's authorized representative(s) to take appropriate action as needed on the following scenarios: Scenario Suspension of Collection Responsibility Agencies must properly monitor and collect debts. Agencies are not allowed to extend holds without restrictions, as this results in multiple suspensions of debt collection activity for excessive periods of time. Agency: It is the Agency's responsibility to review and approve requests for a reduced amount of collection due to a financial hardship. Hardship Requests NFC: As per the Agency's request, NFC will reduce the collection amount; however, the minimum amount allowed to be processed is $50 per pay period. If the hardship request is received after collection procedures have commenced, NFC will honor the late request and adjust the garnishment amount for collections subsequent to the receipt of the hardship request. NOTE: Any collections received by NFC prior to the hardship request, including payroll garnishments, will not be refunded. 11

17 2.5. Federal Laws and Regulations Lesson Overview This lesson introduces the Federal laws and regulations that are relevant to debt management, debt collection, and employee rights and responsibilities. Lesson Objectives By the end of this lesson, you will be able to: Explain the importance and relevance of the Debt Collection Act and DCIA to debt management and collection List all laws and regulations in ABCO operations Introduction to Federal Laws and Regulations Multiple laws and regulations control the establishing, billing, and collecting of receivables, and in assisting customers with managing and understanding those receivables. It is important to understand these laws and regulations to ensure that Agencies act in accordance with policy. Debt Collection Act of 1982 Salary offset is a collection procedure covered by the Debt Collection Act of 1982 (Public Law ), which authorizes automatic deductions from indebted employees pay. Included in the repayment of the debt are: Interest, Penalties, and Administrative costs. The Act also: Allows for contracting of private collection services, Allows for disclosure of debt information to credit reporting services and the IRS (Internal Revenue Service), Permits collection of salary-related debts, program debts, and general indebtedness by offset against an employee s salary, and 12

18 Prescribes standards to determine the amount(s) to be deducted. The Act does not affect indebtedness collections covered by other statutes (i.e. child support, alimony, IRS tax levies, etc.). DCIA of 1996 The Debt Collection Improvement Act (DCIA) of 1996 amended the Debt Collection Act of 1982 to further regulate debt management and collection. DCIA states than any debt that has been delinquent for more than 180 days should be referred to the Treasury Offset Program (TOP) and transferred to Treasury Cross-Servicing (Cross-Servicing). This regulation aims to both improve reporting and accelerate the processing of delinquent debts. TOP, administered by the Bureau of the Fiscal Service's Debt Management Services, may result in the offset of an employee s Federal tax refund or offset of another U.S. Government-issued payment. Office of Management and Budget s Circular No. A-129 The Office of Management and Budget s (OMB) Circular No. A-129 mandates that delinquent receivables older than two years be written off unless documented and justified to OMB in accordance with Treasury. For delinquent receivables under two years, the OMB Circular No. A-129 authorizes collection methods including the following: Demand letters, Administrative wage garnishment, Referring delinquent debts to TOP, and/or Transferring delinquent debts to Cross-Servicing. 13

19 Additional Applicable Laws and Regulations The following table provides additional laws and regulations essential to debt management and collection policy: Legislation Description OMB Circular A-123 Provides for debt management and internal controls Strengthens the requirements for conducting management s assessment of internal control over financial reporting Emphasizes the need for Agencies to integrate and coordinate internal control assessments Federal Claims Collections Standards Clarifies procedures for debt collection Updates with the passing of new and/or relevant legislation In addition, NFC frequently issues bulletins to aid in Agencies understanding of debt management services. TIP: ABCO bulletins may be found at 14

20 2.6. Chapter Review Knowledge Check 1. List the two types of system-generated bills in ABCO. 2. List the three methods by which an Agency may request the establishment of a manually-created bill. 3. True or False: Garnishments cannot be established in ABCO for third party debts (i.e. debts owed to parties other than the Agency). 15

21 4. Mark the following statements as either A for Agency responsibility or N for NFC responsibility. A. Process refunds B. Process deductions from employees pay and post to the accounts receivable records C. Submit corrected T&A records D. Process payroll E. Approve or deny waivers F. Process NOACs to update employee status Chapter Summary Having completed this chapter, you are now able to: Explain the purpose of ABCO Describe the main functions that a user would perform in ABCOINQ Describe the responsibilities of the Agency and of NFC in debt collection and management Explain how ABCO satisfies Federal laws and regulations regarding debt collection and management 16

22 3.0. ABCOINQ Access and Navigation Concepts 3.1. Chapter Overview This chapter introduces users to accessing and navigating within ABCOINQ. In addition, this chapter identifies and explains ABCO status codes. Chapter Objectives By the end of this chapter, you will be able to: Access ABCOINQ Navigate within ABCOINQ Identify ABCO status codes 3.2. ABCOINQ Access Lesson Overview This lesson explains how to obtain a login ID for ABCOINQ and how to access the system. It also identifies the ABCOINQ main menu options. Lesson Objectives By the end of this lesson, you will be able to: Request access to the ABCOINQ system Access the main menu of the ABCOINQ system Explain the ABCOINQ main menu options 17

23 Requests for ABCOINQ Access ABCOINQ access security is designed to prevent unauthorized use of systems and databases. To access ABCOINQ, you must have sign on credentials and access to the NFC Mainframe. Users must request access through their Agency Security Officers (ASO). This request for access should provide the following information: User name, User social security number (SSN), User ID, Agency name, User access request level, Telephone number, and Application name (i.e. ABCOINQ). 18

24 Sign-On Procedures The following table provides instructions how to access ABCOINQ: Step Action 1. On your computer s desktop, open your Agency s network connection. The U.S. Government Computer Warning screen displays. Figure 1: U.S. Government Warning Screen 19

25 Step Action 2. Press Enter. The NFC Banner displays. Figure 2: NFC Banner Screen 20

26 Step Action 3. Enter your User ID in the ENTER USER ID field. 4. Enter your password in the PASSWORD field. 5. Enter ABCO in the ENTER APPLICATION NAME field. 6. Press Enter. The ABCOINQ Main Menu (Figure 3) displays. Figure 3: ABCOINQ Main Menu Screen 21

27 3.3. ABCOINQ User Navigation This lesson introduces the different options on the ABCOINQ main menu screen. It also explains the information that can be accessed within each option. Lesson Objectives By the end of this lesson, you will be able to: Explain the basic navigational commands throughout ABCOINQ List the different options on the ABCOINQ main menu screen Explain the information that can be accessed within the different options Figure 4: ABCOINQ Main Menu Screen ABCOINQ Main Menu Section Definitions The main menu displays a number of options to access different information within ABCOINQ. The table on the following page describes each main menu section: 22

28 Main Menu Option 1. Debtor Information (By Debtor ID) 2. Receivable Info (By Debtor ID and Bill Number) 3. Collections (By Check ID) Definition This option is used to enter a particular debtor identification number and display the following system-generated information specific to the debtor number entered: Name, Address, and Debtor type. After entering a debtor number and bill number for a receivable, this option is used to: Display system-generated information specific to the bill number entered, and View additional screens with information related to the debtor identification number and bill number. This option is used to enter a check identification number for a specific collection account. The subsequent collection screen displays information on a collection for the specific bill number. NOTE: If a check identification number is not available, you may access the collection record from the bill record located at the receivable record through the Receivable Info option. 4. Employee Indebtedness (By Social Security Number) 5. Claims Information (By Claim Number) 6. TOP Information (By Tax-ID Number) This option is used to enter a SSN for a specific debtor and to display all related debt and bill numbers. NFC use only to view information on a delinquent bill that has been sent to Claims. NFC use only to view information on a delinquent bill that has been referred to TOP. 23

29 Function Keys Function keys are assigned to navigate within ABCOINQ. These function keys are typically listed on a separate pad or across the top of the keyboard. NOTE: If you are using a laptop, the keys may be configured differently. Delete Key Press to exit Inquiry Description Enter Tab F1 F7 F8 Press to enter data into the system Press to move cursor from field to field Press to return to the MAIN MENU screen Press to return to the previous record Press to move to the next record 24

30 Figure 5: RECEIVABLE RECORD Screen with Identified Navigation on the following page demonstrates where these options may be found on an ABCO screen. Figure 5: RECEIVABLE RECORD Screen with Identified Navigation 25

31 ABCOINQ Navigation Follow the steps below to access a specific main menu option from the ABCOINQ Main Menu. Step Action 1. Enter the appropriate one-digit program number in the CHOOSE AN OPTION FOR ACCESSING THE ABCO DATABASE: field. 2. Press Enter. The screen for the selected option is displayed. Figure 6: DEBTOR RECORD Screen is an example of a landing page of one of the main menu options. In this case, the landing page for Debtor Information Main Menu Option is displayed. Figure 6: DEBTOR RECORD Screen 26

32 3.4. ABCO Status Codes This lesson identifies different status codes in ABCO and provides an explanation of when each code is used. Lesson Objectives By the end of this lesson, you will be able to: List the different ABCO status codes used in debt management and collection Explain situations when each status code is used Figure 7: RECEIVABLE RECORD Screen with Identified Status Code Field shows an example of where the status code would appear on a screen within the system. Figure 7: RECEIVABLE RECORD Screen with Identified Status Code Field The following table lists and describes each status code that is applied to assist in determining what type of action is required on the bill: 27

33 Code CA CC FE HO Description Cancellation; identifies that a cancellation has been applied. Claims repayment; identifies that the bill was sent to claims and is in repayment. Cancel FEHB bill; designates cancellation for all Departments. Hold; identifies a delinquent debt that has been placed on hold as per your Agency s instruction. IMPORTANT: A hold status can be placed on the account to suspend collections for two pay periods. If more than two pay periods are required to thoroughly research the account, an additional two pay period hold may be requested from a higher level of authority within the Agency. WA WC WO Waiver applied for; identifies that a waiver application has been submitted but approving documentation is still pending. Waiver sent from Claims; applies to bills that have been forwarded to Claims. Write-off; indicates that it has been forwarded to Claims which can include Military Leave Without Pay (LWOP) to charge the Agency. NOTE: This is a USDA-only code. WP Blank Waiver processed; identifies that a waiver has been approved and the debt is waived. Delinquent debt needs review; identifies that no action has been taken yet on the bill. NOTE: If collection from the employee should not be pursued, then Agencies should request a waiver, cancellation, or write-off. 28

34 As previously discussed, NFC sends Agencies a package on a monthly basis via which includes: A standard letter regarding the Debt Management Improvement Plan, A listing of receivables that identifies all accounts requiring immediate Agency attention, and An explanation of the status codes that may be included on the list. These status codes are intended to assist the Agencies in managing their employees outstanding debts. 29

35 3.5. Chapter Review Knowledge Check 1. Fill in the blanks in the following sentences about the options on the ABCOINQ Main Menu. A. The option is used to enter a particular debtor number and display system-generated information. B. The Employee Indebtedness option is used to enter a for a specific debtor and to display related debt and bills. 2. Match the following ABCO codes with their correct status definitions: 1. WA A. Cancel ADJP Bill 2. CA B. Agency requested time to review bill 3. HO C. Waiver applied for 4. FE D. Cancel FEHB Bill Chapter Summary Having completed this chapter, you are now able to: Access ABCOINQ Navigate within ABCOINQ Describe ABCO status codes 30

36 4.0. System Interfaces 4.1. Chapter Overview This chapter focuses on how NFC s PPS, PINQ, IRIS, SPPS Web, and the Reporting Center interact with and relate to ABCO. It also introduces the importance of using PINQ, IRIS, SPPS Web, and the Reporting Center for research and validation of bills in ABCO. Chapter Objectives By the end of this chapter, you will be able to: Describe the relationship between PPS and ABCO Describe ABCO s relationship with PINQ, IRIS, SPPS Web, and the Reporting Center Describe the process to perform ABCO research within PINQ, IRIS, and SPPS Web 31

37 4.2. Accessing the NFC Mainframe Lesson Overview This lesson focuses on the procedure to access the NFC Mainframe which then allows you to access the other important systems related to ABCO. Lesson Objectives By the end of this lesson, you will be able to: Explain the procedure to gain access to the systems through the NFC Mainframe Before learning more about each system, you must first learn how to access systems through the NFC Mainframe. To do so, follow the procedure below to gain access to PINQ and IRIS. Step Action 1. On your computer s desktop, open your Agency s network connection. The U.S. Government Computer Warning screen displays Figure 8: U.S. Government Warning Screen 32

38 Step Action 2. Press Enter. The NFC Banner displays. Figure 9: NFC Banner Screen Step Action 3. Enter your User ID in the ENTER USER ID field. 4. Enter your password in the PASSWORD field. 5. Enter the system abbreviation (PINQ or IRIS) you wish to access in the ENTER APPLICATION NAME field. 6. Press Enter. The respective system s Main Menu displays. 33

39 4.3. Relating NFC s Payroll/Personnel Processing System to ABCO Lesson Overview This lesson focuses on how ABCO interfaces with PPS. Lesson Objectives By the end of this lesson, you will be able to: Describe the relationship between PPS and ABCO Introduction to PPS This lesson provides an overview of PPS and the role that ABCO plays in it. PPS is a database system that offers the following features: Allows the integration and sharing of an array of data records among many modular subsystems, and Consists of current- and prior-year Human Resources (HR) information for all NFC supported Agency employees. This information includes employee salary payment information, personnel actions, name and address information, etc. The modular construction of PPS allows integration of payroll and personnel actions with other payment systems. ABCO is one of the many modular subsystems of PPS. The Payroll/Personnel System Flow, found in Figure 10: Payroll/Personnel System, illustrates how ABCO interfaces with the Payroll/Personnel Corporate Database. 34

40 Figure 10: Payroll/Personnel System ABCO provides accounting data related to revenue, refunds, or reimbursements for USDA s Budget Cost and General Ledger Systems. ABCO provides automatic recording, aging, and reporting of receivables which eliminates the need for Agency period-end estimates. It interfaces with other systems to properly record billing and collection transactions. The following lessons discuss ABCO s relationship with several of these systems within PPS. 35

41 4.4. PINQ Access, Relevance, and Navigation Lesson Overview This lesson focuses on how PINQ relates to ABCO, as well as how to navigate the menu options within PINQ. Lesson Objectives By the end of this lesson, you will be able to: Describe the relationship between PINQ and ABCO Explain the purpose of PINQ and provide an overview of its functionality Navigate menu options within PINQ Describe the process to research T&A records Introduction to Payroll/Personnel Inquiry System PINQ provides inquiry capability to view current and historical payroll data, and provides access to current and prior payroll and personnel data, which allows processors to research T&A records that are associated with ABCO bills. PINQ contains data which is the result of the processing of T&A records and the computation of employees pay. PINQ stores data for the following periods: 26 pay periods for T&A data, and 25 pay periods for payroll and deduction data. PINQ s Relevance to ABCO Remember that the ABCO system automatically generates bills for salary overpayments, which can result from processing: A late personnel action, A corrected T&A record, An internal NFC Adjustment or NFC-29, or A request for billing via SPPS Web. 36

42 When working with a salary overpayment bill that resulted from a corrected T&A record, it is critical to research the T&A record changes to further understand the bill. Since PINQ stores T&A data, it is appropriate to research the T&A corrections in this system. In addition, PINQ displays the health premiums that each employee pays. When working with a past due health benefits bill, it is appropriate to research the employee s portion of health premiums paid to the carrier. PINQ is also used to research salary offset in collecting debts and payroll deductions for employee indebtedness (e.g. tax levies, bankruptcies, jury fees, etc.). If an employee elects payroll deductions, the payroll deductions appear in PINQ. PINQ Menu In order to access PINQ, you must enter PINQ into the Application Name on the NFC Banner Screen. Lesson 4.2 (Accessing the NFC Mainframe) provides detailed directions to access PINQ. The PQ MENU, Figure 11: PQ000 consists of 29 programs, numbered 22 to 83, which contain current and historical payroll data. Program names are descriptive of the type of information contained in each menu option. 37

43 Figure 11: PQ000 PQ MENU Screen The top left portion of each PINQ screen provides the following data: PINQ program number (PQ0##), Employee s nine-digit SSN, Employee s two-digit Agency Code, and Two-digit pay period number. 38

44 The following table outlines the most commonly referenced PINQ programs in relation to ABCO, and provides a description of each: PINQ Program/ Description PQ032 PAYROLL-LISTING Used to research non-receipt of salary check Displays an employee s current pay period plus 25 pay periods of pay data Key Validation Fields and Processing Tips PQ032 stores basic gross-to-net data for a particular pay period that results in a pay check or Direct Deposit/Electronic Funds Transfer (DD/EFT) deposit. Corrected and revalidated T&As may be viewed on PQ032, even when they may or may not trigger a separate pay check. Cash awards and lump sum payments generate separate payments as net salary; however, if additional pay results from a corrected or revalidated T&A (or a bond carryover refund) it is included with the net salary deposit. Some transactions do not result in the disbursement of a check; instead, they are processed for update purposes only. The type of payment (Regular T&A, Corrected T&A, Cash Award, NFC29, etc.) is identified immediately above the employee s name. The order that payments and/or adjustments update to PQ032 is as follows: Corrected or revalidated T&As and NFC-29 adjustments display prior to gross-to-net salary payments. Cash awards and lump sum payments display after gross-to-net salary payments. Corrected T&A is shown as the type of payment for revalidated as well as corrected T&As. 39

45 Figure 12: PQ032 PAYROLL-LISTING Screen 40

46 PINQ Program/ Description PQ046 PACS APPROPRIATION CHARGES Used to research salary related inquiries Key Validation Fields and Processing Tips PQ046 stores amounts paid to the employee by transaction code (TC) with corresponding rates and hours. It provides one screen of data related to each pay transaction code. It attaches dollar amounts to each TC and also prorates contributions such as the Government s portion of FEHB premiums. The PAY-TRAN-CODE field indicates which TC is reflected. Pay TCs not shown on the T&A, but derived by the system, are also reflected (TCs for cash award payments, allowances, administratively uncontrollable overtime, availability pay, etc.) and overtime under the Fair Labor Standards Act (FLSA) (the difference between the Title V and FLSA computations). It should also be noted that dollar values are assigned to TCs which are not actually being paid (comp leave earned, credit hours earned, and quarters deductions, etc.) Figure 13: PQ046 PACS APPROPRIATION CHARGES Screen 41

47 PINQ Program/ Description PQ051 PACS RECEIPT ACCOUNTS Used to research payroll deductions for employee indebtedness (e.g., tax levies, bankruptcies, jury fees, etc.) Key Validation Fields and Processing Tips Most administrative billings are on a one-time basis with some accounts being liquidated by partial payments. Those liquidated by partial payment may be through payroll deductions. If so, a receipt account is established and deductions are made each pay period. These deductions display in PQ051, PACS Receipt Accounts. Figure 14: PQ051 PACS RECEIPT ACCOUNTS Screen 42

48 PINQ Navigation Follow the steps below to access a specific record from the PINQ Menu: Figure 15: PQ000 PQ MENU Screen Step Action 1. Enter the employee s SSN in the SSNO field. 2. Enter the appropriate two-digit program number (PQXX) in the PG-NO field. 3. Enter the one or two-digit pay period being requested. 4. Press Enter. 43

49 Research on the Same Employee in a Different PINQ Program Step Action 1. Press Tab until the cursor is below the current program number. 2. Enter the appropriate two-digit program number (PQXX) below the current program number. TIP: Enter 00 to access the PINQ Menu. 3. Enter the one or two-digit pay period being requested, if it is different than the pay period being viewed. 4. Press Enter. Research a Different Employee in the Same PINQ Program Step Action 1. Press Tab until the cursor is below the current SSN. 2. Enter the SSN for the employee being requested. 3. Press Enter. TIP: When switching PINQ programs or researching a different employee in the same PINQ program, it is not necessary to return to the first screen if the program has multiple screens. TIP: Refer to the PINQ procedure manual at: for further information on using PINQ. 44

50 4.5. IRIS Access, Relevance, and Navigation Lesson Overview This lesson provides an overview of IRIS and how it relates to ABCO. It also focuses on how to navigate IRIS using current and historical data menus to research and validate billing deductions. Lesson Objectives By the end of this lesson, you will be able to: Describe the relationship between IRIS and ABCO Navigate menu options within IRIS Identify the relevant IRIS options for researching billing deductions Introduction to IRIS IRIS is a read-only inquiry system that provides access to current and prior payroll and personnel data within PPS, the system of record. Personnel actions and payroll documents apply to PPS, and are visible in IRIS when they pass all Personnel Input and Edit Subsystem (PINE) nightly batch edit process requirements and are effective in a prior or current pay period. IRIS stores data for: At least two to three years with respect to Transaction History, and Ten years with respect to Personnel History. 45

51 IRIS Relevance to ABCO Payroll deductions can be verified within IRIS. In particular, users may research within IRIS to verify payments and deductions for the following situations: IRS Form 668-W, Notice of Intent of Levy on Wages, Salary, and Other Services, Chapter 13 Bankruptcy, IRIS Form 2159, Payroll Deduction Agreement, Commercial garnishments, and Past due health benefits while on a non-pay status. IRIS Menu In order to access IRIS, you must enter IRIS into the Application Name on the NFC Banner Screen. Lesson 4.2 (Accessing the NFC Mainframe) provides detailed directions to access IRIS. The IRIS Menu, displayed in Figure 16: IR000 IRIS Menu Screen, provides six menus from which to choose once entering the system. 46

52 Figure 16: IR000 IRIS Menu Screen ABCO research primarily takes place in Current Data Menu. The table on the following page provides information on the two most applicable screens contained within Current Data Menu for ABCO research. 47

53 Menu IR114 RECEIPT ACCOUNTS Description This program displays receipt account information for indebted employees who have withdrawals to pay back debts. These can be commercial or government debts. The following fields are listed on this program: The amount per pay period, The balance remaining, Whether or not the deduction is voluntary or involuntary, The type of debt, and The account number. Figure 17: IR114 RECEIPT ACCOUNTS Screen 48

54 Menu IR125 PERSONNEL ACTIONS SUMMARY Description This program displays a listing of personnel actions processed in the last year. This program is used in particular to validate if an employee is on non-pay status, based on NOAC 460, LWOP - Not to Exceed (NTE). The following fields are listed on this program: The pay period, Year, Effective date of the action, Nature of action, Agency, Personnel Office Identifier (POI), Batch number, and User ID of the person who entered the action. 49

55 Figure 18: IR125 PERSONNEL ACTIONS SUMMARY Screen IRIS Navigation To access an employee s record in IRIS, follow the steps below: Step Action 1. Enter the employee s social security number in the SSNO field. 2. Enter the IRIS Menu/Screen number in the SCREEN NUMBER field. 3. Press Enter. The requested employee record displays. TIP: Refer to the IRIS procedure manual at: for further information on using IRIS. 50

56 4.6. SPPS Web Access, Relevance, and Navigation Lesson Overview This lesson provides an overview of SPPS Web and how it relates to ABCO. It also focuses on how to navigate SPPS Web to view bills associated with records in ABCO. Lesson Objectives By the end of this lesson, you will be able to: Describe the relationship between SPPS Web and ABCO Navigate menu options within SPPS Web Describe the process to research a bill generated in SPPS Web associated with a record in ABCO Introduction to SPPS Web SPPS Web is an online payroll/personnel database entry, adjustment, inquiry, and retrieval application. This tool is used by Agencies to override the automated payment process and manually adjust an employee s payroll record, in the case of special processing conditions. SPPS Web enables Agencies to enter, process, calculate, and disburse payments for employees who have a database record established in PPS. As a result of payroll adjustments, funds are transferred to either the Federal employee or a third party. NOTE: SPPS Web contains historical data from July 2000 to present. SPPS Web stores all Agency-requested manual payments and adjustments processed by NFC since Pay Period 14 of calendar year (CY) SPPS Web s Relevance to ABCO As you have learned in the Introduction to ABCO section, ABCO monitors employee debt and records all collections through an automated system until the debt is satisfied. SPPS Web is used to request billing which will be processed as a manually-created bill in ABCO. 51

57 When researching or validating a bill collection in ABCO, you can access SPPS Web to view the original request for billing an employee to understand why the employee was initially billed. Figure 19: Examples of Requests for Billing in SPPS Web below provides examples of requests for billing an employee in SPPS Web. Figure 19: Examples of Requests for Billing in SPPS Web Logging into SPPS Web SPPS Web is a web-based application. You access SPPS Web through a web portal. Step Action 1. Enter in the Web browser Navigation Bar to access the NFC Home site. 2. Press Enter. The NFC Home page displays. 52

58 Figure 20: NFC Home Site APPLICATION LAUNCHPAD Step Action 3. Click Special Payroll Processing System (SPPS) on the Application Launchpad. The U.S. Government Warning page displays. TIP: SPPS Web can also be accessed by typing the Web address in the Navigation Bar of a Web browser. Figure 21: U.S. Government Warning Page 53

59 Step Action 4. Click Accept. The SPPS Web Log In page displays. Figure 22: SPPS Log In Page Step 5. Enter your User ID in the User ID field. Action NOTE: Your Log In credentials (User ID and Password) for SPPS Web are the same as for SPPS Mainframe. 6. Enter your password in the Password field. IMPORTANT: You can change your password at any time, but not more than once a day. Click Change Password to change your password. 7. Click Log In. The Database Selection page may display only if you process for more than one Agency. Figure 23: SPPS Web Database Selection Screen 54

60 Step Action 8. Select the appropriate Database for your Agency. The SPPS Web Home page displays. Figure 24: SPPS Web Home Page If you do not have access to SPPS Web, you may request access through your ASO. Your request should include the following information: User name, User SSN, User ID, Agency name, User access request level, Telephone number, and Application name. 55

61 SPPS Web Navigation The SPPS Web Menu Bar displays in the top right corner on all SPPS Web pages. Figure 25: SPPS Web Menu Bar Each menu bar displays menu options for processing and/or viewing transactions. When a menu option is selected, a specific action is initiated. The menu options vary based on your current page view and/or the function you are performing. To access any of the menu options, click on the menu name. The SPPS Web Menu options are listed below: SPPS Home Page Menu Options Adjustment List Description Allows you to search for and add manual adjustments. 56

62 SPPS Home Page Menu Options Interest (NFC Only) Reports Database Help Logout Description Allows NFC users to view interest rates and dates used to calculate payment and adjustment transactions for Settlement Backpay adjustments processed in SPPS Web. This option is view-only for Agencies. Allows you to request reports in SPPS Web. Allows you to select an alternate database, if you have security access to multiple databases. Allows you to view the SPPS Web Help page. Allows you to log out of SPPS Web. Search for Existing Records The following procedure explains how to search on an existing request for billing record within SPPS Web. All records can be searched through the Adjustment List menu option from the SPPS Web Menu Bar. Figure 26: Adjustment List Menu Option Step Action 1. Click Adjustment List on the SPPS Web Home page. Figure 27: Agency Adjustment List Search Fields 57

63 Step Action 2. You can search for a transaction record by a specific: SSN, Organizational structure (Agency Code and POI), User ID, Type of adjustment (Type Adjust), Pay period (PP), Year (Yr), or Status Code. Enter the appropriate search criteria on the Agency Adjustment List page. 3. Select the appropriate Status Code, if known. NOTE: The Status Code indicates the action s payment processing status. 4. Click Search. The adjustments meeting the provided search criteria display. 5. Click on the desired adjustment to edit or view the record. Figure 28: Adjustment Search Results 58

64 4.7. Reporting Center Relevance Lesson Overview This lesson provides an overview of the Reporting Center and how it relates to ABCO. Lesson Objectives By the end of this lesson, you will be able to: Describe the relationship between the Reporting Center and ABCO Introduction to the Reporting Center The Reporting Center is an interactive NFC website that enables Agencies to produce predefined and customized reports. These reports can be viewed online, printed, saved to a folder, and/or displayed in a graphical format. Reports are arranged in a predefined format, and users have the option to customize reports based on certain selection criteria. TIP: Please refer to the NFC Reporting course for more information on this system. Reporting Center s Relevance to ABCO When researching a bill, it is important to view the deduction amounts in an employee s paycheck. In these situations, the Reporting Center can provide the employee s Statement of Earnings and Leave report. In particular, the Reporting Center can provide the following information: The difference in an employee s pay between two pay periods as a result of the bill due to payroll deductions, The payments made by the employee each pay period once he or she has returned to pay status (in relation to bills created while employee is on non-pay status), and The employee s year-to-date gross pay total. 59

65 NFC often searches for employees Statement of Earnings and Leave through this Reporting Center to verify and understand the debt deductions from their paychecks. CAUTION: Not all Agencies have access to employees Statements of Earnings and Leave through the Reporting Center and may need to request it from their internal Agency-specific systems and/or the employees themselves, if the Agency is assisting the employee to understand the bill. 60

66 4.8. Chapter Review Knowledge Check 1. Match the appropriate PPS subsystem with the correct description: 1. Used to query employee payroll data A. PINQ 2. Used to produce predefined and customized reports B. IRIS 3. Used to provide access to payroll/personnel data and certain payroll document history C. SPPS Web 4. Used to manually adjust an employee s payroll record D. Reporting Center 2. Match the appropriate PINQ program screen with the correct description: 1. Used to research salary related inquiries A. PQ Used to research payroll deductions for employee indebtedness (e.g., tax levies, bankruptcies, jury fees, etc.) 3. Used to research detailed accounting, TC information, and deduction appropriations. B. PQ046 C. PQ051 Chapter Summary Having completed this chapter, you are now able to: Describe the relationship between PPS and ABCO Describe ABCO s relationship with PINQ, IRIS, SPPS Web, and the Reporting Center Describe the process to perform ABCO research within PINQ, IRIS, and SPPS Web 61

67 5.0. Salary Overpayment Bills for Current Employees 5.1. Chapter Overview This chapter provides an overview of the process to bill a current employee for a salary overpayment. Chapter Objectives By the end of this chapter, you will be able to: Articulate the purpose of a salary overpayment bill Identify the forms and letters relevant to salary overpayment bills Explain the ways in which a salary overpayment bill can be paid The following terminology will be addressed in this chapter: Terminology Disposable earnings Description Any pay that remains after required deductions (income taxes, social security taxes, Federal retirement programs, premiums for life and health benefits, and any other deductions required by law) The following letters and forms will be addressed in this chapter: Letter/Form Form NFC-1100D, Notice of Intent to Offset Salary Form NFC-1101D, Repayment Agreement Form AD-3041, ADJP Waiver/Cancellation Request Description Form sent by NFC to the Agency which communicates the current employee s salary overpayment bill Form sent by NFC to the Agency if the salary overpayment bill is a major indebtedness which indicates repayment options Official form that Agencies must complete to submit a request to waive, cancel, or adjust a debt to NFC 62

68 5.2. Introduction to Salary Overpayments This lesson provides an overview of billing salary overpayments for both minor and major indebtedness. Lesson Objectives By the end of this lesson, you will be able to: Describe when salary overpayment bills are generated Define minor and major indebtedness Reasons for Salary Overpayment Bill Generation We have learned that salary overpayment bills can be system-generated. In particular, salary overpayment bills result from the following actions: A personnel history correction, A corrected T&A record, An internal NFC adjustment through NFC-29, or A request for billing processed via SPPS Web. Types of Salary Overpayment Debts A salary overpayment debt falls into one of two categories depending on the debt amount, as defined in the following table: Category Definition Repayment options Minor indebtedness Major indebtedness Less than 15% of the employee s disposable earnings More than 15% of the employee s disposable earnings Collected through a one-time payroll deduction Collected through a lump sum payment or multiple payroll deductions 63

69 Bill Generation Schedule and Notification Bills are generated on the 1st, 8th, 16th, and 24th of each month. When these bills are generated, NFC sends Forms NFC-1100D, Notice of Intent to Offset Salary, to each Agency. This form indicates the following items: The amount of the employee s debt, The nature of the debt, The employee s rights, and The interest percentage rate as determined by the Department of Treasury. If the bill is a major debt, the Agency also receives Form NFC-1101D, Repayment Agreement. This form indicates the following items: The amount of the debt and related facts, The amount to be deducted each pay period, The pay period that deductions will begin, and The interest percentage rate as determined by the Department of Treasury. NOTE: Interest is charged at the current rate established by Treasury, unless a Department allows a higher rate. Interest is charged on the unpaid balance every month, beginning with the second month after the date on the Notice of Intent to Offset Salary. Interest is not accrued on those debts paid in a lump sum on or before the pay period stated on the notice. The interest rate charged when the debt is computed remains at the fixed rate for the duration of the time used in repaying the debt. You can view examples of Forms NFC-1100D for both minor and major debts and Form NFC-1101D in Appendix D: Chapter 5 Forms and Letters. 64

70 To recap, Figure 29: Forms Sent to Agencies for Salary Overpayments depicts the forms that are sent to the Agencies for the current employee s salary overpayment bill. Figure 29: Forms Sent to Agencies for Salary Overpayments 65

71 5.3. Closing Out a Salary Overpayment Bill This lesson describes the process of closing out a salary overpayment bill. Lesson Objectives By the end of this lesson, you will be able to: Determine when salary offset occurs to repay a bill Describe how to view a salary overpayment receivable record in ABCO Employee Notification of the Salary Overpayment Bill Upon Agency receipt of Form NFC-1100D, Notice of Intent to Offset Salary, the Agency must perform the following actions as identified in Figure 30: Figure 30: Agency Actions after Receiving Forms NFC-1100D and NFC-1101D, As Applicable The following table assigns an owner to each action item from the beginning of the process through waiver requests. Action Complete and make a copy of Forms NFC-1100D and, as applicable, NFC-1101D Identify an Agency POC for the employee Forward Forms NFC-1100D and NFC-1101D, as applicable, to the employee at the earliest opportunity Request a hearing or waiver for the bill within a thirty-day window which is counted from the day that NFC sends the Agency the form(s) Owner Agency Agency Agency Employee 66

72 Minor Indebtedness Salary Offsets Remember from the previous lesson that a minor debt is less than 15% of the employee s disposable earnings. If the debt is considered a minor debt, a one-time salary offset will occur. The debt will be automatically deducted from the employee s salary in the second pay period following the 30-day waiting period which begins on the date of the notice. The employee may view the adjustments on his or her Statement of Earnings and Leave for the pay period in which the bill is generated. Figure 31: Salary Overpayment Bill Deduction Schedule Major Indebtedness Salary Offsets Remember from the previous lesson that a major debt is more than 15% of the employee s disposable earnings. If the debt is considered a major debt, the employee may repay it in the following ways: The Repayment Agreement (Form NFC-1101D) or a lump sum payment may be returned to NFC to resolve the debt. If NFC does not receive the Repayment Agreement or a lump sum payment, repayment deductions will begin in the second pay period following the end of the 30-day waiting period. Deductions will be made at the rate of 15% of disposable earnings, plus interest at the percentage rate as identified on Form NFC-1100D. Refer to the Figure 31: Salary Overpayment Bill Deduction Schedule to understand the timeline of the salary offset. 67

73 The employee may view the adjustments on his or her Statement of Earnings and Leave for the pay period in which the bill is generated. Viewing the Receivable Record in ABCOINQ Following salary offset, the system generates a receivable record that can be viewed in ABCOINQ. The following procedure explains how to view a receivable record in the system from the ABCOINQ main menu: Figure 32: ABCOINQ Main Menu Screen Step Action 1. Enter 4 in the CHOOSE AN OPTION FOR ACCESSING THE ABCO DATABASE: field. 2. Press Enter. The EMPLOYEE INDEBTEDNESS screen displays. 68

74 Figure 33: EMPLOYEE INDEBTEDNESS Screen Step Action 3. Enter the employee s nine-digit SSN in the SOCIAL SECURITY NUMBER field. 4. Press Enter. The list of bills for the requested employee displays. 69

75 Figure 34: EMPLOYEE INDEBTEDNESS Screen Results Step 5. Enter s next to the applicable record. Action 6. Press Enter. The receivable record for the requested employee and bill number displays. 70

76 Figure 35: Receivable Record Screen Page 1 of 2 71

77 Let s examine this receivable record more in-depth, starting with the bill number. The bill number format provides valuable information to understand why the bill was generated. The bill number format is YPP2##### and is determined by the following conditions: Position in Bill Description Example First Digit Determined by the calendar year in which the action that generated the bill was processed. 3 (i.e. 2013) Second and Third Digits The pay period in which the action was processed. 14 Fourth Digit 2 indicates a salary-related bill generated through PPS. NOTE: If the bill is a FEHB Bill, this digit will be a 1. If it is a digit other than 1 or 2, it is not a system-generated bill. 2 Fifth through Ninth Digits System-generated numbers Let s take a look at the second page of the receivable record. Step Action 7. Press F2. The second page of the RECEIVABLE RECORD screen displays. 72

78 Figure 36: RECEIVABLE RECORD Screen Page 2 of 2 The fields on the second page of the RECEIVABLE RECORD screen provide information on the bill s repayment. The following table outlines the relevant fields to understand the receivable record: Field Name REC/CLAIMS DATE YYPP TO GARNISH GARNISH EST AMT Description The date the bill was generated The pay period in which the deductions will begin (e.g. 2013, Pay Period 18) The estimated amount of deductions per pay period 73

79 Field Name PAYMENT REF Description Payment reference number. The first four positions are used to indicate the reason for the receivable: Y in the 1st position indicates the bill was generated due to a corrected T&A. Y in the 2nd position indicates the bill was generated due to a supplemental T&A. Y in the 3rd position indicates the bill was generated due to a corrected or late personnel action. Y in the 4th position indicates the bill was generated due to an NFC-29, which can be viewed in SPPS Web. 74

80 5.4. Applying for a Waiver or Cancellation of the Debt This lesson describes the process of requesting a hearing or waiver of the debt. Lesson Objectives By the end of this lesson, you will be able to: Explain the process of applying for a hearing or waiver of a bill Identify the form necessary to submit a request to waive or cancel a debt Employees may request a hearing or waiver of a bill. NFC must be notified in writing within 30 days of the billing date if the employee has requested a hearing or waiver. All requests must be dated and include the approving official s signature and title. Receipt of a request will suspend all collection activities until a decision has been made. CAUTION: It is critical that Agencies send Form NFC-1100D to employees in a timely manner to allow employees to request a hearing or waiver, as appropriate. The thirty-day window begins on the day that NFC sends the form to the Agency, not when the Agency sends the form to the employee. Form AD-3041, ADJP Waiver/Cancellation Request, is the official form that Agencies must complete to submit a request to waive, cancel, or adjust a debt. Agencies may submit Form AD-3041 in the following ways: Mail the form to NFC, Fax the form to ABCO, or Scan and the form to the appropriate designated ABCO box for the Agency. TIP: To access Form AD-3041, navigate to IMPORTANT: This form contains Personally Identifiable Information (PII), so take the proper precautions when submitting the form to ABCO so that this information is not compromised. 75

81 CAUTION: All hold requests must be received by NFC prior to the close of business on the Wednesday before the official Thursday payday. If NFC receives a request to cancel the debt or receives information that the debtor has requested a waiver of the debt, the Agency may request an additional five pay period suspension of collection. NFC understands that some debts will require sensitive deliberations that will require additional time to resolve. As such, a waiver request or hearing request can be renewed every five pay periods until a decision concerning the debt has been determined. To avoid additional charges to the Agency and to conform with the DCIA, any money collected prior to the waiver request will not be refunded until a final decision has been determined regarding the debt. IMPORTANT: All requests to cancel or waive a debt must be made by an authorized Agency representative. It is the responsibility of every Agency to update and maintain authorized contact types within the Table Management System (TMGT), Table

82 5.5. Chapter Review Knowledge Check 1. Which of the following is not a reason for the generation of a bill for salary overpayment? A. Processing of personnel history correction B. Corrected T&A record C. from management D. Internal NFC adjustment 2. True or False: Major indebtedness is classified as any debt more than 25% of disposable earnings. 3. Match the following steps in the waiver application process (1-3) with the responsible party (A-C). 1. Submits a corrected T&A, personnel history correction, request for billing in SPPS Web, or internal adjustment through NFC Submits a request for a hearing or waiver the bill. 3. Codes bill as WA which places the bill on hold for 5 pay periods as the waiver is deliberated. Employee NFC Agency Chapter Summary Having completed this chapter, you are now able to: Articulate the purpose of a salary overpayment bill Identify the forms and letters relevant to salary overpayment bills Explain the ways in which a salary overpayment bill can be paid 77

83 6.0. FEHB Bills for Current Employees 6.1. Chapter Overview This chapter provides an overview of past due health benefits bills for current employees on non-pay status. Chapter Objectives By the end of this chapter, you will be able to: Articulate the purpose of a past due health benefits bill Identify the forms and letters relevant to past due health benefits bills Determine if a past due health benefits bill is pre-tax Explain the ways in which a past due health benefits bill can be paid The following terminology will be addressed in this chapter: Terminology FEHB LWOP AWOL Description Federal Employees Health Benefits Leave Without Pay Absence Without Leave The following letters and forms will be addressed in this chapter: Letter/Form Form NFC-937, Notice of Intent to Recover Past Due Health Benefits From Salary Pre-tax FEHB Refund Form Description Form sent by NFC to the current employee, with a courtesy copy sent to the Agency, which communicates the employee s past due health benefits bill NFC completed form to request a pre-tax refund for the employee; replacement of Form AD

84 6.2. Introduction to FEHB Bills This lesson provides an introduction to bills for past due health benefits. Lesson Objectives By the end of this lesson, you will be able to: Explain health benefits payment options for employees on non-pay status Determine when NFC makes automatic deductions from an employee s salary for past due health benefits Introduction to Past Due Health Benefits Bills When an employee is on non-pay status and is covered by FEHB, the employee is obligated to continue payments for his or her share of the premiums. When an employee enters non-pay status, the Agency must complete the following actions: Process an SF-50 personnel action with the appropriate NOAC, and Include the one digit number indicating the correct employment status code on the SF-50, as displayed on IR101. If the Agency does not process the personnel action, a T&A record must be submitted for each pay period indicating the particular TC depending on the type of non-pay status. The following table outlines the appropriate TCs for the T&A records: Type of Non-Pay Status LWOP AWOL Suspension Appropriate TC TC-71 TC-72 TC-73 79

85 After the Agency processes the personnel action or submits the T&A record, the payroll system sends the: Employee s premium for FEHB to the carrier via the Office of Personnel Management (OPM), and Agency s premiums for FEHB to the carrier via OPM. The premium amount can be viewed on PQ032, as seen in Figure 37: PQ032 PAYROLL-LISTING Screen, Health Insurance Amount, below. This screen displays the payroll deduction in PINQ for the employee s portion of the premium. Also displayed is the amount for the Receipt Account, as seen in the OTHER DED field. Figure 37: PQ032 PAYROLL-LISTING Screen, Health Insurance Amount PQ051, PACS Receipt Accounts, displays the PACS Receipt Account in PINQ established for a specific pay period as seen in Figure 38. There is a receivable for each consecutive pay period while the employee is on non-pay status. 80

86 Figure 38: PQ051 PACS RECEIPT ACCOUNTS Screen 81

87 6.3. Closing Out a FEHB Bill This lesson describes the process of closing out a past due health benefits bill. Lesson Objectives By the end of this lesson, you will be able to: Determine when a salary offset occurs to repay the past due health benefits bill Describe how to view a past due health benefits receivable record in ABCOINQ We have just seen the health benefits premium amounts in PQ032 and PQ051. PPS furnishes this information, the employee premium amount and receipt account, to ABCO. ABCO, in turn, establishes a receivable to bill and collect the employee s share of the premium. The employee is obligated to continue payments to the premiums using one of the following options: The employee may continue paying premiums by sending payments directly to NFC, or The employee may opt to wait until he or she is returned to pay status. NOTE: Employees should contact their own Agency HR offices for additional details on tax implications when discussing options for repayment of premiums. If the employee opts to wait until he or she is returned to pay status, NFC directly sends the employee Form NFC-937, Notice of Intent to Recover Past Due Health Benefits from Salary, once the employee returns. NFC also sends a courtesy copy of this letter to the Agency. An example of Form NFC-937 is found in Appendix E: Chapter 6 Forms, Letters, and Calculations. If the employee does not pay the amount due or make other arrangements to satisfy the debt, NFC will begin making deductions from the employee s salary beginning the pay period following the due date (i.e. 30 days from the date on the Form NFC-937). 82

88 An accounts receivable record is established in ABCO as a result of the information received from PPS. Figure 39: provides an example of a receivable record. Figure 39: RECEIVABLE RECORD Screen Let s examine this receivable record more in-depth, starting with the bill number. The bill number format provides valuable information to understand why the bill was generated. The bill number format is determined by the following conditions: Position in Bill Description Example First Digit Determined by the calendar year of the personnel action that generated the bill. 8 (i.e. 2008) Second and Third Digits The first pay period of non-pay status. 05 Fourth Digit 1 indicates a FEHB bill generated through PPS. NOTE: If the bill is a salary overpayment bill, this digit will be a 2. If the digit is a value other than a 1 or 2, it is not a system-generated bill. 1 83

89 Position in Bill Description Example Fifth through Ninth Digits System-generated numbers Next, let s take a look at three of the fields on the RECEIVABLE RECORD screen (Figure 39), which provide information on the bill s repayment. The following table outlines the relevant fields to understand the receivable record: Field Name PAYMENT REF GARNISH PP AMT BILL AGING DT Description The last four digits of the value show the first and last pay periods of non-pay status (05-13). Amount to be deducted each pay period; equal to the premium amount of the first pay period of non-pay status. Date the bill was printed and mailed to the employee, in MM DD YY format. A copy is also mailed to the agency. The bill is generated when the employee returns to paid status or separates from service. 84

90 Let s take a look at the receivable details for this bill: Figure 40: RECEIVABLE DETAILS Screen The following table outlines the relevant fields in the RECEIVABLE DETAILS screen to understand the receivable details: Field Name EMP/EXT AMT SRC PROCESSED CHG REF CONT/ORG AMT HB/JV Description The amount of the employee s share of the premium Date that the payment was processed The first two digits indicate the year (i.e. 2008), while the third and fourth digits indicate the pay period (i.e. 13) The amount of the employer s share of the premium The healthcare carrier s code 85

91 6.4. Cancellation of a FEHB Bill This lesson explains the considerations when cancelling a past due health benefits bill. It also describes the necessary calculations to determine if a past due health benefits bill payment was processed in pre-tax status. Lesson Objectives By the end of this lesson, you will be able to: Explain why past due health benefits bills may be cancelled Describe why pre-tax status impacts health benefits bills Identify the data necessary to make the pre-tax determination Perform the necessary calculations to discover if a payment was processed pretax In certain situations, a FEHB bill may be cancelled. This may occur when the Agency delays in processing the employee s return to pay status, and the amount due is too high due to pay periods that should not have been included in the bill. The appropriate NFC representative will make the change in ABCO; an example of which displays in Figure 41: Receivable Record - Cancelled FEHB Bill. 86

92 Figure 41: Receivable Record - Cancelled FEHB Bill Once cancelled, the UPDATE REF field displays the user ID of the individual who made the change. The STATUS CODE field displays FE for a FEHB bill cancellation. Additionally, in the PAYMENT REF field on the second page of the record, the number representing pay periods of LWOP are zeroed out. After the cancellation of the bill updates in ABCO, a record is sent to the PPS to reverse the deduction(s) for pay periods impacted by the bill cancellation. This occurs on a 9E8282 schedule. NOTE: NFC uses the 9E (e.g. 9E8282) schedule for manual pay adjustments. 87

93 Refund on a Past Due Health Benefits Bill The employee may request a refund on a past due health benefits bill if he or she erroneously paid the Agency. If the employee requests a refund, it is critical to determine if a pre-tax refund is necessary. CAUTION: The refund is considered as taxable gross income. ABCO does not have a mechanism for withholding taxes or submitting the taxes to the appropriate taxing authorities. In this case, navigate to the PQ032 screen for the pay period in which the deduction took place. The PQ032 screen provides important data to inform the determination if the refund is pre-tax, including: The gross pay amount, The current health benefits premium paid by the employee, The past due health benefits premium paid by the employee, and The HITS tax Figure 42: PQ032 PAYROLL-LISTING Screen 88

94 Pre-Tax Calculation Formula The following table explains the steps to determine if a deduction was pre-taxed using the HITS tax value. Please refer to Figure 42: PQ032 PAYROLL-LISTING Screen to determine the values used in the example. Step Calculation Example 1. Subtract the current health benefits premium paid by the employee from the gross pay amount. 2. Subtract the past due health benefits premium paid by the employee from the gross pay amount = = Multiply the amount by x Compare the multiplied product with the HITS tax amount. If the value matches, the deduction was pre-taxed = 8.87 Refunding a Deduction that Was Not Pre-Taxed If the calculations demonstrate that the deduction was not pre-taxed, Collections can process the refund. The ABCO system then processes the refund. Refunding a Deduction that Was Pre-Taxed If the calculations demonstrate that the deduction was pre-taxed, NFC will complete the Pre-Tax FEHB Refund Form. An example of this form is seen in Appendix E: Chapter 6 Forms, Letters, and Calculations. An entry is produced in the SPPS Web system to have the request for the pre-taxed refund processed. If the deduction is under $100, a refund will be processed through the ABCO system. 89

95 6.5. Chapter Review Knowledge Check 1. List three of the values necessary to determine the pre-tax status of a past due health benefit bill payment. 2. For past due health benefits bill number , identify the following information based on the bill number: A. Calendar year of the personnel action that generated the bill B. System-generated numbers C. First pay period of LWOP 3. Which of the following cannot be found on the RECEIVABLE DETAILS screen in ABCO following the processing of the bill? A. Health record B. Carrier s premium code C. Employee s share of the premiums D. Each pay period of LWOP 90

96 Chapter Summary Having completed this chapter, you are now able to: Articulate the purpose of a past due health benefits bill Identify the forms and letters relevant to past due health benefits bills Determine if a past due health benefits bill is pre-tax Explain the ways in which a past due health benefits bill can be paid 91

97 7.0. Salary Overpayments for Separated Employees 7.1. Chapter Overview This chapter provides an overview of the process to bill a separated employee for a salary overpayment. Chapter Objectives By the end of this chapter, you will be able to: Explain why a salary overpayment bill is generated for a separated employee Identify a manually-created salary overpayment bill Identify the forms and letters relevant to salary overpayment bills to separated employees The following letters and forms will be addressed in this chapter: Letter/Form Form NFC-631na1, Bill for Collection Description Form sent by NFC to the separated employee which communicates the employee s salary overpayment bill 92

98 7.2. Introduction to Salary Overpayments for Separated Employees This lesson provides an overview of billing a separated employee for salary overpayments. Lesson Objectives By the end of this lesson, you will be able to: Describe a separated employee s obligation to pay for salary overpayments Explain why a salary overpayment bill is generated for a separated employee Introduction to Salary Overpayment Bills for Separated Employees If an employee separates from his or her Agency through resignation or death before collection of a debt is completed, any debt balance is automatically collected from any subsequent payments due to the indebted employee (e.g. final salary, lump sum payments, etc). In addition to salary offset, when an employee separates or retires from an Agency and leaves a debt, his or her retirement account can be levied for settlement of the account. As we learned in Chapter 5, salary overpayment bills result from the following actions: The processing of a personnel history correction, A corrected T&A record, An internal NFC adjustment through NFC-29, or A request for billing processed via SPPS Web. Scenario: Bill Request in SPPS Web You have learned that an Agency can generate a salary overpayment bill through a request for billing in SPPS Web. After the bill is entered into SPPS Web, the following actions occur: 93

99 Figure 43: Request for Billing in SPPS Web Flow Let s examine a request for billing submitted by the Agency in SPPS Web to understand a real-life example as seen in Figure 44: Request for Billing in SPPS Web. Figure 44: Request for Billing in SPPS Web 94

100 NFC takes this request for billing and creates a bill number associated with it. Let s learn more about the bill number format. The bill number format is determined by the following conditions: Position in Bill Description Example First Digit Determined by the calendar year in which the bill is generated. 8 Second, Third, and Fourth Digits Fifth Digit Determined by the Julian date out of 365 days in which the analyst established the bill. If it affects the employee s W-2, this will be a W. If not, then this is determined by the Julian date again. NOTE: In the case that it is determined by a Julian Date, the Julian date will become the fifth, sixth, and seventh digits and there will be two system-generated numbers as the eighth and ninth digits. 212 (i.e. July 31) W Sixth, Seventh, Eighth, and Ninth Digits System-generated numbers

101 7.3. Closing Out a Separated Employee s Salary Overpayment Bill This lesson describes the process of closing out a salary overpayment bill for a separated employee. Lesson Objectives By the end of this lesson, you will be able to: List the forms necessary in billing a separated employee for salary overpayments Describe the special considerations in regards to SF-2805 Collection of a Separated Employee s Salary Overpayment Bill Now that we understand how NFC creates a bill for the salary overpayment, let s examine how the bill appears to the employee. After the Agency performs the action to generate a salary overpayment bill, NFC creates Form NFC-631na1, Bill for Collection. Form NFC-631na1 is sent to alert separated employees of their salary overpayment debts and can be seen in Appendix F: Chapter 7 Forms and Letters. If payment is not received within 60 days, NFC forwards the bill to the Claims department for collection through the TOP. 96

102 7.4. Chapter Review Knowledge Check 1. You receive an inquiry about salary overpayment bill number 9003W621 for a separated employee. Mark the following statements about the bill as true or false: The bill was established in The bill was established on January 3. The bill affects the separated employee s W Which form is sent to the separated employee when billing for a salary overpayment? 3. After how many days will NFC forward the debt to the Claims Section? A. 14 B. 60 C. 25 D. 30 Chapter Summary Having completed this chapter, you are now able to: Explain why a salary overpayment bill is generated for a separated employee Identify a manually-created salary overpayment bill Identify the forms and letters relevant to salary overpayment bills to separated employees 97

103 8.0. FEHB Bills for Separated Employees 8.1. Chapter Overview This chapter provides an overview of bills generated for separated employees resulting from past due health benefits. Chapter Objectives By the end of this chapter, you will be able to: Identify the forms and letters specific to past due health benefits bills of separated employees Explain the ways in which a separated employee s past due health benefits bill can be closed out The following letters and forms will be addressed in this chapter: Letter/Form Form NFC-631na1, Bill for Collection Description Form sent by NFC to the separated employee which communicates the employee s past due health benefits bill 98

104 8.2. Introduction to FEHB Bills for Separated Employees This lesson provides an overview of the forms and letters relevant to the process of billing a separated employee for past due health benefits. Lesson Objectives By the end of this lesson, you will be able to: Explain why a past due health benefits bill is generated for a separated employee Describe a separated employee s obligation to pay for past due health benefits Introduction to Past Due Health Benefits Bills for Separated Employees When an employee is on non-pay status and is covered by FEHB, the employee is obligated to pay for his or her share of the premiums. When an employee enters nonpay status, the Agency must complete the following actions: Process an SF-50 personnel action with the appropriate NOAC, or Submit T&A records coded to reflect the employee s non-pay status. In Chapter 6, we learned that the employee is obligated to continue payments to the premiums using one of the following options: The employee may continue paying premiums by sending payments directly to NFC, or The employee may opt to wait until he or she is returned to pay status. However, it is possible that the employee separates while on non-pay status. In these situations, the employee is still obligated to repay the premiums. 99

105 8.3. Closing Out a FEHB Bill This lesson explains the procedures to close out a bill generated due to past due health benefits for a separated employee. Lesson Objectives By the end of this lesson, you will be able to: List the forms necessary in billing a separated employee for past due health benefits Collection of a Separated Employee s Past Due Health Benefits Bill After the Agency has completed the necessary actions to separate an employee, NFC generates Form NFC-631na1, Bill for Collection, and sends it to alert separated employees of their past due health benefits debts. If the debt is not paid within 30 days, NFC will forward the bill to OPM. OPM will attempt to collect the debt but after 60 days of non-payment, the bill is sent to Claims. This process is depicted in Figure 45: Separated Employee s Unpaid Past Due Health Benefits Debt Flow to OPM and Claims on the following page. 100

106 Figure 45: Separated Employee s Unpaid Past Due Health Benefits Debt Flow to OPM and Claims 101

107 8.4. Chapter Review Knowledge Check 1. List the two forms necessary to flag a separated employee s retirement due to a past due health benefits bill. 2. If the debt is not satisfied, after how many days will NFC send the bill to OPM? A. 14 B. 60 C. 25 D. 30 True or False: A. Separated employees are not obligated to pay past due health benefits bills. B. NFC sends Form 1100D to the separated employee to alert him or her of the past due health benefits debt. C. The health benefits bill is immediately sent to Claims if the employee does not respond to NFC s initial contact within 30 days. Chapter Summary Having completed this chapter, you are now able to: Identify the forms and letters specific to past due health benefits bills of separated employees Explain the ways in which a separated employee s past due health benefits bill can be closed out 102

108 9.0. Procedures for Separated Employees with Other Indebtedness 9.1. Chapter Overview This chapter explains the additional reasons an employee may be indebted to the U.S. Government after separating from an Agency. It also lists the proper procedures to collect the debt following separation. Chapter Objectives By the end of this chapter, you will be able to: List the types of debt an employee can owe once separated Contact the appropriate ABCO departments about non-return of equipment 103

109 9.2. Types of Other Indebtedness This lesson identifies the types of employee debts due to the U.S. Government beyond salary overpayment and past due health benefits. Lesson Objectives By the end of this lesson, you will be able to: List the alternative ways an employee can be indebted to the U.S. Government upon separation Introduction to Other Types of Indebtedness There may be a variety of reasons for why an employee may be indebted to the U.S. Government upon separation. NFC commonly processes the following types of indebtedness: Negative Leave. An employee takes advanced annual leave and separates prematurely from the Agency before paying the advanced annual leave through accrual. Therefore, the employee is indebted to the Agency for the advanced leave taken. Non-return of equipment. An employee neglects to return equipment that was provided to him or her during the time of employment. This may include uniforms, weapons, laptops, etc. 104

110 9.3. Other Indebtedness Contact Resources This lesson identifies the appropriate resources to contact when a separated employee is indebted for reasons other than salary overpayments or past due health benefits. Lesson Objectives By the end of this lesson, you will be able to: List the appropriate resources necessary to collect other types of debts from separated employees Negative Leave Indebtedness In order to collect the debt that resulted from a negative leave balance, the Agency must process a request through SPPS Web to establish a bill. Non-Return of Equipment Indebtedness In order to collect the debt resulting from the non-return of equipment, the Agency must contact the appropriate NFC contact. The following table indicates the appropriate ABCO box to send a request to establish the bill: Agency Department of Agriculture Department of Homeland Security Department of Treasury All other Departments Address [email protected] [email protected] [email protected] [email protected] CAUTION: Only authorized personnel from the Agency (in TGMT) may contact the inbox and Contact Center. If they are not the POC, NFC will not respond to the inquiry. 105

111 9.4. Chapter Review Knowledge Check 1. True or False: A. Negative leave occurs when an employee takes advanced annual leave. B. Agencies have the authority to bill a separated employee for the nonreturn of equipment. 2. Through which system should an Agency submit a request to bill a separated employee for negative leave? A. PINQ B. SPPS Web C. Reporting Center D. TINQ 3. On the line below, write the full NFC address that your Agency must contact to submit a request to bill an employee for the non-return of equipment. Chapter Summary Having completed this chapter, you are now able to: List what other types of debt an employee can owe once separated Contact the appropriate ABCO departments about non-return of equipment 106

112 10.0. Leave Buy Back Chapter Overview This chapter explains the process to convert annual and sick leave to LWOP. It also explains the process to buy back advanced leave. Chapter Objectives By the end of this chapter, you will be able to: Articulate the purpose of a leave buy back bill Identify the situations in which leave buy back bills are created Identify the forms and letters specific to leave buy back indebtedness Explain the process of converting annual and sick leave to LWOP Describe the process of buying back advanced leave The following letters and forms will be addressed in this chapter: Letter/Form Form NFC-631na1, Bill for Collection Restoration of Leave Letter Description Form sent by NFC to the employee to communicate the employee s annual and/or sick leave or advanced leave buy back bill Form sent by NFC to the Agency to request the restoration of the employee s leave after the employee has paid the bill 107

113 10.2. Conversion of Annual and/or Sick Leave to LWOP This lesson explains how an employee may convert annual/sick leave to LWOP. Lesson Objectives By the end of this lesson, you will be able to: Explain the process of converting annual/sick leave to LWOP Identify the forms and letters necessary in the process Explain the bill number format of an annual/sick leave conversion to LWOP Introduction to Leave Conversion to LWOP Status Let s examine a situation in which an employee would be billed for leave conversion. When an employee becomes sick or injured on the job, the employee may use annual and/or sick leave during his or her absence and recovery. If the Department of Labor Office of Workers Compensation (DOL OWCP) approves the employee s Workers Compensation claim, the employee may be entitled to convert the used annual and/or sick leave to LWOP. If DOL OWCP deems the illness or injury as a valid Workers Compensation claim, it will send NFC a check for its portion of the leave buy back. Upon receiving this check, NFC sends Form 631na1 Bill for Collection to the employee reflecting the balance due. The employee may repay this balance through the following methods: Lump sum payment, or Request for payroll deductions. Form 631na1 Bill for Collection may be viewed in Appendix G: Chapter 10 Forms and Letters. 108

114 Manual Creation of an Annual and/or Sick Leave Conversion to LWOP Status Note the bill number on the Form 631na1 Bill for Collection on Figure 58: Form NFC- 631na1 Bill for Collection for Annual/Sick Leave Conversion in Appendix G: Chapter 10 Forms and Letters. NFC creates a bill and a bill number associated with the conversion to LWOP status to document the bill to the employee. Let s learn more about the bill number format. The bill number format is determined by the following conditions: Position in Bill Description Example First Digit Determined by the calendar year in which the bill is generated. 8 Second and Third Digits System-generated numbers. 00 Fourth and Fifth Digits OW for being an OWCP case. NOTE: If it is not an OWCP case, this would not be a leave buy back situation. OW Sixth, Seventh, Eighth, and Ninth Digits System-generated numbers Leave Restoration After the bill is paid, NFC sends the employing office a letter to restore the leave, as seen in Appendix G: Chapter 10 Forms and Letters. The Agency then adjusts the leave record and removes LWOP hours through TINQ. The timekeeper must also be notified in order to update the employee s master file for leave. 109

115 10.3. Buy Back of Advanced Annual/Sick Leave This lesson explains the process of an employee voluntarily buying back advanced annual and/or sick leave. Lesson Objectives By the end of this lesson, you will be able to: Describe the process of buying back advanced leave Identify the forms involved in the buy back of advanced annual/sick leave Buy Back of Advanced Annual/Sick Leave Employees may opt to voluntarily buy back advanced leave rather than pay advanced leave back through accrual. To process the employee s request to buy back advanced leave, the Agency submits a request for billing via SPPS Web. Payroll then processes the request on a 9E0675 schedule, and NFC manually establishes the bill. NFC then submits Form NFC-631na1 to the employee to alert him or her of the amount owed. An example of NFC-631na1 may be seen in Appendix G: Chapter 10 Forms and Letters. After the employee has paid the balance in full, ABCO notifies the Agency POI by letter as seen in Figure 61: Restoration of Leave for Advanced Leave Buy Back in Appendix G: Chapter 10 Forms and Letters. Upon notification, the Agency should restore the employee s leave record in TINQ. The timekeeper should also be notified to adjust the employee s T&A information to reflect the appropriate balance(s). 110

116 10.4. Chapter Review Knowledge Check 1. Order the following steps in the process of an employee buying back leave. A. Timekeeper adjusts the employee s T&A information to reflect the appropriate balance(s). B. Agency submits request via SPPS Web for the employee to buy back leave. C. Agency restores the leave record in TINQ. D. ABCO manually establishes the bill. E. ABCO notifies the Agency POI of the payment by letter. 2. When is the letter for restoration of leave sent to the Agency? A. Once balance due is paid B. Two pay periods after billing C. Beginning of a new fiscal year D. Once the timekeeper creates a corrected T&A 3. Match the following steps in the process of converting to LWOP status (1-3) with the responsible party (A-C). 1. Adjusts the leave record and removes LWOP hours via TINQ 2. Sends Form-631na1 to the employee reflecting the balance due 3. Sends NFC a check for their portion of the leave buy back A. OWCP B. NFC C. Agency 111

117 Chapter Summary Having completed this chapter, you are now able to: Articulate the purpose of a leave buy back bill Identify the situations in which leave buy back bills are created Identify the forms and letters specific to leave buy back indebtedness Explain the process of converting annual and sick leave to LWOP Describe the process of buying back advanced leave 112

118 11.0. Garnishments Requested by Other Parties Chapter Overview This chapter provides an overview of garnishments requested by third parties. It explains the role of NFC and the ABCO system in these third party garnishment requests. Chapter Objectives By the end of this chapter, you will be able to: Articulate ABCO s role in processing garnishments requested by other parties Describe the special considerations when handling child support and alimony payments Describe the special considerations when handling IRS levies Describe the special considerations when handling IRS payroll deduction agreements Describe the special considerations when handling Chapter 13 Bankruptcy bills Describe the special considerations when handling commercial garnishments The following terminology will be addressed in this chapter: IRS Terminology Internal Revenue Service Description Garnishment Court order to obtain money for a third party debt 113

119 The following letters and forms will be addressed in this chapter: Letter/Form IRS Tax Levy Letter Form 668-W Notice of Levy on Wages, Salary, and Other Income Form 2159 Payroll Deduction Agreement Chapter 13 Bankruptcy Court Order Form AD-343, Payroll Action Request Description Letter sent by NFC to the employee to communicate the IRS tax levy and instructions for returning completed Form 668-W, Notice of Levy on Wages, Salary, and Other Income Multi-part form used to levy an individual's wages; IRS sends the form to NFC, NFC only forwards Parts 2 through 5 to the employee, and the employee must return completed Parts 3 and 4 to NFC within three days of receipt Multi-part form used by an employee to initiate a payment installment agreement with the IRS through payroll deduction Letter sent by court to the Agency requesting garnishments from the employee s wages; Agency forwards this court order to NFC in conjunction with completed Form AD-343 Form sent by Agency to NFC to request that NFC establish payroll deductions to satisfy an order for a Chapter 13 Bankruptcy Court Order or commercial garnishments 114

120 11.2. Introduction to Garnishments Requested by Other Parties This lesson introduces the concept of garnishments requested by third parties. Lesson Objectives By the end of this lesson, you will be able to: List the types of garnishments requested by other parties Explain NFC s role in third party garnishment management and collection Examples of Third Party Garnishments At times, the Agency may receive requests from third parties to collect a debt from an employee. Figure 46: Common Types of Third Party depicts the most common types of third party debts that NFC assists Agencies in managing and collecting. Figure 46: Common Types of Third Party Garnishments In the following lessons, we will examine each of these four types of third party garnishments more in depth. 115

121 NFC s Role in Third Party Garnishment Management and Collection NFC s ABCO section performs various functions depending on the type of third party requested garnishment. NFC may complete the following actions: Manual processing of bills, Establishment of payroll deductions, and Establishment of receipt account. IMPORTANT: The Agency is responsible for documenting third party debts in the HR system of record (e.g. EmpowHR, Entry, Processing, Inquiry, and Correction System [EPIC], or your Agency s HR system). Third party debts are recorded in these systems of record, not in ABCO. 116

122 11.3. Child Support and Alimony Payments This lesson explains bills that are manually created due to child support and alimony payment debt. Lesson Objectives By the end of this lesson, you will be able to: List the reasons that a child support or alimony payment is manually processed Send the court order for the payments to the correct address Explain the role of the Agency POI in the child support and alimony payment process Reasons for Manual Processing of Child Support and Alimony Payment Bills NFC manually processes child support and alimony payment bills in certain situations. These situations occur when: The order stipulates that the deduction is a percentage of gross wages, or The employee has more than five separate orders. When one of these conditions is present, NFC manually processes the child support and/or alimony payment bills. Submission of Court Orders To begin the manual processing of these bills, the Agency is responsible for sending the court orders to the proper address. The Agency must submit these court orders to the following address: USDA-OCFO-NFC Administrative Billings and Collections Section P.O. Box New Orleans, LA

123 Role of Agency POI The designated Agency POI must complete the following responsibilities: Notify the employee by certified letter that deductions will begin effective the following pay period, and Notify the court if the deductions are discontinued due to LWOP or separation IRS Levies and IRS Payroll Deduction Agreements This lesson explains the process when the IRS places a levy on an employee s pay. It also introduces IRS payroll deduction agreements. Lesson Objectives By the end of this lesson, you will be able to: Explain how the Agency notifies the employee and NFC of an IRS levy Determine how the deduction for the levy is calculated Determine when IRS payroll deductions are held from an employee s pay Explain the process to view IRS payroll deductions IRS Levy Notification Process Once the IRS has mandated a levy on an employee s wages, there are time sensitive steps to follow in order to notify the employee and begin making salary deductions. Figure 47: IRS Levy Notification Process gives an outline of the necessary steps in the process: Figure 47: IRS Levy Notification Process 118

124 The IRS Tax Levy Letter explains Form 668-W and informs the recipient of when the deductions will begin. Form 668-W reveals the amount owed as well as explains the guidelines around the levy. Examples of the IRS Tax Levy Letters and Form 668-W Parts 1 and 3 may be found in Appendix H: Chapter 11 Forms, Letters, and Tables. Therefore, NFC sends the following forms and letters to the employee as seen in Figure 48: Figure 48: Letters and Forms Sent to a Current Employee for an IRS Levy Employee Payment Process After notifying the employee of the IRS levy, NFC will process his or her payroll in consideration to the IRS levy. If the hours worked are the same each pay period, the employee can be paid in PPS. If the employee is manually paid, the deduction for the levy is calculated using the Table for Figuring the Amount Exempted from the Levy, which is found in Appendix H: Chapter 11 Forms, Letters, and Tables. 119

125 IMPORTANT: If the employee does not return Form 668-W Parts 3-4 with his or her tax exemptions, the IRS instructs that the employee shall be considered as married filing a separate return with one exemption claimed on the statement. Manual payments may be verified using SPPS Web. System-generated payments may be verified on IR114, Receipt Account type 55. TIP: Refer to the SPPS Web course for additional information on using the system. NOTE: Employees are unable to use the Employee Personal Page (EPP) to change Federal withholding while under an IRS levy. IRS Payroll Deduction Agreements The IRS may choose to enter into a payroll deduction agreement with the indebted employee. IRS Form-2159, seen in Appendix H: Chapter 11 Forms, Letters, and Tables, serves as the following documentation: Documents the agreement between the employee and the IRS for payroll deductions, and Authorizes NFC to take deductions from the employee s salary. The agreement includes the following information: Employee s name, Employee s address, Employee s social security number, Total amount due, and Amount to be deducted each pay period. Additionally, the employee must sign and date the agreement and provide the address to which payments are sent. 120

126 Making Deductions from an Employee s Pay Deductions will begin the following pay period unless another date is specified. The deductions can be reviewed on IR114, Receipt Account type Chapter 13 Bankruptcy This lesson explains the process of placing deductions on an employee s salary due to Chapter 13 Bankruptcy. Lesson Objectives By the end of this lesson, you will be able to: Explain the legal ordinance of billing employees after establishing Chapter 13 bankruptcy Describe the process of making deductions from an employee s pay based on Chapter 13 Bankruptcy Chapter 13 Bankruptcy and Public Law Chapter 13 Bankruptcy is guided by Public Law , November 6, 1978, which revised the Bankruptcy Act (covered in 11 USC 1325). Under this provision, a Federal bankruptcy court may order an employee of any entity to pay all or part of such income to the trustee. NOTE: The definition of entity includes a U.S. Government unit. Bankruptcy orders received from a Federal bankruptcy court must be honored. These orders do not have to be referred to the Office of the General Counsel (OGC) for legal determination unless circumstances warrant a specific review by that office. The Agency personnel office will make this determination. The court order may specify that up to 100 percent of net salary may be withheld for purposes of bankruptcy. 121

127 Establishing Chapter 13 Bankruptcy Debts Figure 49: Chapter 13 Bankruptcy Process gives an outline of the necessary steps in the process: Figure 49: Chapter 13 Bankruptcy Process A sample court order may be viewed in Appendix H: Chapter 11 Forms, Letters, and Tables. After NFC processes the order, the employee s deduction can be tracked by viewing IR114, Receipt Account type

128 11.6. Commercial Garnishments This lesson explains the commercial garnishment billing process. It also explains the necessary forms, actions, and system interfaces for establishing commercial garnishments from an employee s pay. Lesson Objectives By the end of this lesson, you will be able to: Explain how employees are notified about commercial garnishment requests Explain how a receipt account is created Describe the method to view deduction records Determine if a deduction amount is within the limits Introduction to the Commercial Garnishment Billing Process Lastly, let s take a look at commercial garnishments. Agencies which have an agreement with NFC may submit Form AD-343 requesting that NFC establish payroll deductions to satisfy an order for commercial garnishments. Agency personnel must send the employee a letter of notification with the garnishment order attached. The letter must be mailed within 15 days after receipt of the order. The letter must include the following information: Amount owed, The pay period the garnishments will begin, and The amount to be garnished each pay period. IMPORTANT: Deductions for all commercial garnishments combined are limited to 25% of disposable pay. If an employee pays child support for more than 25% of his or her disposable pay, the collection for the commercial garnishment cannot be made. The Agency must notify the court if the order cannot be honored due to other garnishments. 123

129 Form AD-343 Completion and Submission In order for the AD-343 Form to be processed, it must be completely filled out. Form AD-343 is found below as well as in Appendix H: Chapter 11 Forms, Letters, and Tables. Figure 50: Form AD-343, Payroll Action Request 124

130 The following steps describe the process to complete and submit the AD-343: Step Action 1. Indicate the pay period in which deductions should begin. 2. Enter the assigned Agency code. 3. Enter the assigned POI. 4. Enter the Agency name, address, city, state, and zip code. 5. Enter the employee s social security number. 6. Enter the employee s name. 7. Enter Commercial garnishment in the Nature of Action To be Taken field. 8. Enter the amount to be deducted each pay period, the address where the deduction should be sent, and the case number (if one was assigned) in the Explanation of Circumstances Which Require This Action. 9. Enter the total amount to be collected in Block Enter Agency POC and telephone number. 11. Submit the AD-343 along with a copy of the court order to: USDA-National Finance Center Attn: ABCO Section P.O. Box New Orleans, LA

131 Establishment of a Receipt Account Upon receipt of AD-343, NFC will establish a receipt account to begin deductions. The account may be viewed on IR114, Receipt Accounts, where it will reflect account type 50, Commercial Garnishment, as well as the following tax levy account numbers: If the deduction is for a state tax levy, the Account Number will end in ST. If the deduction is for a city tax levy, the Account Number will end in LO. Deductions may be viewed via the following two methods: On the employee s Statement of Earnings and Leave under category Other Deductions, or On the PPS database on PQ032 as Other Deductions. 126

132 11.7. Chapter Review Knowledge Check 1. List three examples of third parties that can request garnishments. 2. Which of the following reasons explains why a child support or alimony payment would be manually processed through the ABCO system? Circle all that apply. A. The order stipulates that the deduction is a percentage of gross wages. B. The employee s spouse is also employed by the agency. C. The employee has more than five separate orders. D. The employee has a bill assigned to him or her due to a past due health benefits or salary overpayment. Chapter Summary Having completed this chapter, you are now able to: Articulate ABCO s role in processing garnishments requested by other parties Describe the special considerations when handling child support and alimony payments Describe the special considerations when handling IRS levies Describe the special considerations when handling IRS payroll deduction agreements Describe the special considerations when handling Chapter 13 Bankruptcy bills Describe the special considerations when handling commercial garnishments 127

133 12.0. Course Summary ABCO Knowledge Check The following are questions to review the most important information from today s training: 1. What is the purpose of the ABCO system? 2. What are some examples of NFC responsibilities within ABCO? What are some examples of Agency responsibilities within ABCO? 3. What are the two types of system-generated bills? 4. What is the general process of notifying an employee of a salary overpayment bill? 5. What do the different fields within the bill format represent? 6. What are the other types of employee indebtedness? 7. What are examples of leave buy back situations? 8. What are examples of third parties that can request bills in ABCO? 128

134 12.2. Things to Remember Please remember the following items when using ABCO and managing debts. Agency actions and requests determine when bills are established. NFC does not decide when to create bills for the employees. Agencies may cancel or waive bills with the proper documentation. Timeliness is essential in managing and collecting debts from employees. Agencies should forward forms and letters, as necessary, to the employee after receiving them from NFC. Read bulletins issued by NFC s ABCO section since changes in policy and law may affect your Agency in debt management and collection. Only approved Agency officials per Table 063 may contact NFC regarding debts and submit cancellation or waiver requests Course Accomplishments Having completed this course, you are now able to: Describe the ABCO system and its purpose Access and navigate within the ABCO Inquiry (ABCOINQ) System Describe how ABCO relates to the Payroll/Personnel Inquiry System (PINQ), Information/Research Inquiry System (IRIS), Special Payroll Processing System (SPPS) Web, and Reporting Center Describe the workflow processes related to current employees Billing salary overpayments Billing past due health benefits Describe the workflow processes related to separated employees Billing salary overpayments Billing past due health benefits Describe the workflow process for billing separated employees with other indebtedness Describe the workflow process for leave buy back Describe the workflow process for garnishments requested by other parties 129

135 12.4. Additional Resources For additional resources please contact/refer to the following: NFC Contact Center NFC4GOV ABCO Procedures Manual ABCOINQ Procedures Manual ABCO Bulletins PINQ Procedures Manual Requester Console 130

136 13.0. Appendices Appendix A: Course Glossary Concept/Item Advanced Leave Chapter 13 Bankruptcy Customer Agency Garnishment Levy Major Indebtedness Manually-Created Bill Minor Indebtedness Negative Leave Receivable Record Refund Reporting Center Description Annual leave granted to be used before the time has accrued in the system When an individual declares bankruptcy, it allows them to develop a plan to repay all or part of their debts if they earn a regular income Agency that uses the ABCO system to bill employees Court order to obtain money for a third party debt Seizure of property to satisfy a debt Sum total of money owed is more than 15% of the employee s disposable earnings A bill established by an ABCO analyst in the system due to a request from the Agency Sum total of money owed is less than 15% of the employee s disposable earnings An employee takes advanced annual leave and separates prematurely from the Agency before paying the advanced annual leave through accrual Generated in ABCO after salary offset to view details about the bill An employee may request this repayment if he or she erroneously paid the Agency on a past due health benefits bill Interactive NFC website that enables Agencies to produce predefined and customized reports 131

137 Concept/Item System-Generated Bill Third Party Debt Description A bill automatically generated in the ABCO system due to a salary overpayment or past due health benefit A debt that is collected after an Agency receives a request from third party for collection 132

138 13.2. Appendix B: Acronym List Acronym ABCO ABCOINQ ADJP ASO AWOL CC CY DCIA DOL EPIC EPP FEHB FLSA GESD HITS IRIS IRS LWOP NFC NOA Definition Administrative Billings and Collections Administrative Billings and Collections Inquiry System Adjustment Processing Agency Security Officer Absence Without Leave Claims Repayment Calendar Year Debt Collection Improvement Act Department of Labor Entry, Processing, Inquiry, and Correction System Employee Personal Page Federal Employment Health Benefits Fair Labor Standards Act Government Employee Services Division Health Insurance Tax Information/Inquiry Research System Internal Revenue Service Leave Without Pay National Finance Center Nature of Action 133

139 Acronym NOAC NTE Nature of Action Code Not To Exceed Definition OASDI OGC OMB OPM OWCP PACS PII PINE PINQ POC POI PP PPS PQ00 PQ032 PQ046 PQ051 SF SPPS Old Age, Survivor, and Disability Insurance Office of the General Counsel Office of Management and Budget Office of Personnel Management Office of Workers Compensations Payroll Accounting System Personally Identifiable Information Personnel Input and Edit Subsystem Payroll/Personnel Inquiry System Point of Contact Personnel Office Identifier Pay Period Payroll/Personnel System PINQ Menu PINQ Menu PACS Appropriation Charges PACS Receipt Accounts Standard Form Special Payroll Processing System 134

140 Acronym SSN T&A TC TINQ TMGT TOP Social Security Number Time and Attendance Transaction Code Time Inquiry System Table Management System Treasury Offset Program Definition USDA United States Department of Agriculture 135

141 13.3. Appendix C: Table for Determining Bill Status Codes Code CA CC FE HO WA WC WO WP Blank Description Cancellation; identifies that a cancellation has been applied. Claims repayment; identifies that the bill was sent to Claims and is in repayment. Cancel FEHB bill; designates cancellation for all Departments. Hold; identifies a delinquent debt that has been placed on hold as per your Agency s instruction. Waiver applied for; identifies that a waiver application has been submitted; however, approving documentation is still pending. Waiver sent from Claims; applies to bills that had been forwarded to Claims. Write-off; indicates that it has been forwarded to Claims which can include Military LWOP to charge the Agency. Waiver processed; identifies that a waiver has been approved; the debt is waived. Delinquent debt needs review; identifies that no action has been taken yet on the bill. 136

142 13.4. Appendix D: Chapter 5 Forms and Letters Figure 51: Form NFC-1100D, Notice of Intent to Offset Salary, Minor Example 137

143 Figure 52: Form NFC-1100D, Notice of Intent to Offset Salary, Major Example 138

144 Figure 53: Form NFC-1101D, Repayment Agreement 139

145 13.5. Appendix E: Chapter 6 Forms, Letters, and Calculations Figure 54: Julian Date Calendar 140

146 Figure 55: Form NFC-937, Notice of Intent to Recover Past Due Health Benefits from Salary 141

147 Pre-Tax Calculation Formula The following table explains how to determine if a deduction was pre-taxed using the HITS tax value: Step Calculation 1. Subtract the current health benefits premium paid by the employee from the gross pay amount. 2. Subtract the past due health benefits premium paid by the employee from the gross pay amount. 3. Multiply the amount by Compare the multiplied product with the HITS tax amount. If the value matches, the deduction was pre-taxed. 142

148 Figure 56: Pre-tax FEHB Refund 143

149 13.6. Appendix F: Chapter 7 Forms and Letters Figure 57: Form NFC-631na1 Bill for Collection, Salary Overpayment for Separated Employee 144

150 13.7. Appendix G: Chapter 10 Forms and Letters Figure 58: Form NFC-631na1 Bill for Collection for Annual/Sick Leave Conversion 145

151 Figure 59: Restoration of Leave Letter for Conversion of Annual/Sick Leave to LWOP 146

152 Figure 60: Form NFC-631na1 for Advanced Leave Buy Back 147

153 Figure 61: Restoration of Leave for Advanced Leave Buy Back 148

154 13.8. Appendix H: Chapter 11 Forms, Letters, and Tables Figure 62: IRS Tax Levy Letter 149

155 Figure 63: Notice of Levy on Wages, Salary, and Other Income Part 1 150

156 Figure 64: Notice of Levy on Wages, Salary, and Other Income Part 3 151

157 Figure 65: Tables for Figuring Amount Exempt from Levy on Wages 153

158 Figure 66: Form 2159 Payroll Deduction Agreement, Part 2 Employer s Copy 154

159 Figure 67: Sample Chapter 13 Bankruptcy Court Order Letter 155

160 Figure 68: Form AD

161 157